New Discovery contains 987 ounces of coarse visible gold; supports geological model predicting coarse gold beneath Father's Day Vein
TORONTO, June 5, 2019 /CNW/ - RNC Minerals (TSX: RNX) ("RNC") is pleased to announce another high-grade gold discovery at its Beta Hunt Mine, where the company has encountered coarse gold in quartz veins on the level beneath the Father's Day Vein discovery.
An estimated 987 oz of coarse gold has been recovered in 238 kg of rock from a series of veins. The accuracy of this estimate at this stage is considered to be +10%/-25% based on the measurement of the estimated gold content for each of the samples by specific gravity determinations. RNC will provide a final estimate of ounces recovered once this material has been processed.
"We are thrilled to have encountered high grade coarse gold in the area below the Father's Day Vein. This most recent discovery provides further support for our geological model that predicts that the areas where the mineralized shear zone and sedimentary sulphides intersect are capable of generating "Father's Day Vein" style coarse gold mineralization, and proves that such areas extend at least 25 metres below the Father's Day Vein discovery," said Mark Selby, President and CEO of RNC Minerals. "We look forward to continued mining in this highly prospective area with the potential to find other veins containing coarse gold. As material developments occur, we will continue to update the market."
As noted in RNC's news release of May 15, 2019, mining has been advancing along the main A Zone shear on the 16 level toward a point approximately 25 metres below the Father's Day Vein discovery on 15 Level (Figure 3). RNC's focus on mining on 16 level has been driven by RNC's geological model, which predicts that Father's Day Vein style coarse gold is likely to occur where mineralized shears intersect sedimentary sulphides and by the occurrence of a diamond drill intersection of 119 g/t over 6.40 m, including 1,406 g/t over 0.50 m in hole AZ15-013 located 7 metres below the Father's Day Vein occurrence (see RNC's news release of May 15, 2019 and figure 3 below).
The high-grade gold structures were encountered in the A Zone 16 level Ore Drive at the Beta Hunt Mine as it entered the area where the down-plunge extensions of Father's Day Vein style mineralization were projected to occur This is where the A Zone shear intersects sedimentary sulphides on the 16 level Ore Drive. (see figures 1 and 2).
The veins that were discovered were mined out in the 16 level Ore Drive which will continue to advance through this area over the next several weeks. The material between the 16 level and the 15 level above will be mined when the 16 level Ore Drive has advanced sufficiently to allow efficient stoping of this part of the A Zone shear.
The disclosure of scientific and technical information contained in this news release has been approved by Alger St-Jean, Vice-President, Exploration of RNC, a Qualified Person under NI 43-101.
The recovered coarse gold quantities were determined and compiled at the Beta Hunt mine site by Beta Hunt Mine staff who are full time employees of Salt Lake Mining Pty Ltd, a 100% owned subsidiary of RNC.
Gold content of rock specimens containing coarse gold was determined using the non-destructive specific gravity method according to the following calculation.
Where Au_g is the contained gold weight of the rock specimen in grams, Gold SG is the specific gravity of gold and equals 19.3, Dry Weight_g is the dry weight in air of the rock specimen measured via laboratory scale adjusted for container mass, Water Mass ml is the mass of water displaced by the rock specimen measured by placing the rock in water and weighing the displaced water, Host Rock SG is the estimated specific gravity of the host rock (gangue material in the specimen) based upon interpreted relative proportions of quartz and basalt in the host rock and in this case ranges from 2.7 to 2.8.
The error in this estimation method is primarily related to the estimation of Host Rock SG. The values determined for Au_g are considered to be accurate within a range of +10% to -25% of the determined value.
About RNC Minerals
RNC has a 100% interest in the producing Beta Hunt gold mine located in Western Australia where a significant high grade gold discovery - "Father's Day Vein" - was made. RNC is currently completing a 40,000 metre drill program, the results of which will be incorporated into an updated NI 43-101 compliant Mineral Resource Estimate and mine plan targeted for Q2 2019. Beta Hunt gold resource potential is underpinned by multiple gold shears with gold intersections across a 4 km strike length which remain open in multiple directions adjacent to an existing 5 km ramp network. RNC also has a 28% interest in a nickel joint venture that owns the Dumont Nickel-Cobalt Project located in the Abitibi region of Quebec which contains the second largest nickel reserve and ninth largest cobalt reserve in the world. RNC owns a 27% interest in Orford Mining Corporation, a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience. RNC's common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the completion of the Purchase Option, production guidance and the potential of the Beta Hunt Mine and Dumont Nickel – Cobalt Project.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.